Good morning, welcome to PepsiCo's 2026 second quarter earnings question and answer session. Your lines have been placed on listen only until it is your turn to ask a question. Today's call is being recorded and will be archived at www.pepsico.com. It is now my pleasure to introduce Mr. Ravi Pamnani, Senior Vice President of Investor Relations. Mr. Pamnani, you may begin. Thank you, Kevin, good morning, everyone. I hope everyone has had a chance this morning to review our press release and prepared remarks, both of which are available on our website. Before we begin, please take note of our cautionary statement. We may make forward-looking statements on today's call, including about our business plans, guidance, and outlook. Forward-looking statements inherently involve risks and uncertainties and only reflect our view as of today, July 9th, 2026, and we are under no obligation to update. When discussing our results, we refer to non-GAAP measures which exclude certain items from reported results. Please refer to our second quarter 2026 earnings release and second quarter 2026 Form 10-Q, available on pepsico.com, for definitions and reconciliations of non-GAAP measures and additional information regarding our results, including a discussion of factors that could cause actual results to materially differ from forward-looking statements. Joining me today are PepsiCo's Chairman and CEO, Ramon Laguarta, and PepsiCo's CFO, Steve Schmitt. We ask that you please limit yourself to one question. With that, I will turn it over to the operator for the first question. Thank you. In order to ask a question or make a comment, please press star followed by one one on your touch tone phone at any time. We will pause for a moment while we compile our Q&A roster. Our first question comes from Bonnie Herzog with Goldman Sachs. Your line is open. Thank you. Good morning, everyone. I had a question on PFNA. Your volume was flat in the quarter, despite what seems to be stepped up affordability initiatives and innovation. Hoping you could spend some time helping us understand the changes you've made, maybe what's working, what's not working, and then whether you need to lean in further, maybe on affordability or maybe innovation to drive better volume growth. Thank you. Good morning, Bonnie. Let me just step back for a minute and give a full company perspective. There's a lot of things we feel good about the business, and there's a few things that we're going to be very focused on in the second half to accelerate the business. If you step back, the company, the first half reported almost 7% revenue growth, and we've grown global volumes 3% in foods and 2% in beverages. That's the fastest growth in volume since 2022. Included in that volume growth is the volume growth in the U.S. foods business, which, it was very strategic for us to get the category back to volume growth and to get our business to gain share of volume in the category. We feel good about that particular turnaround, and we feel good about how the business is performing. There are two pillars to how that happened. One was, as you mentioned, affordability investment, and the second one has been the growth on the permissible part of the portfolio and the portion control part of the portfolio. That part is going very well. On the affordability part, we feel good about the investment. I think in the second half of the year, we're going to have to optimize the return on investment on some of those pricing investments. It depends by channel, by customer, and the teams are learning. I want you to step back and take the bigger picture that a category that was negative in volume now is positive in volume. We were losing share in volume. We're gaining share in volume, and that is all very positive, and it was the first strategic intent that we had early in the year when we decided to lower the prices of the business. I don't know, Steve, anything else from your side? I think that pretty much covers it. Thank you. One moment for our next question. Our next question comes from Filippo Falorni with Citi. Your line is open. Hi. Good morning, everyone. Ramon, you mentioned in the prepared remarks that in the U.S., consumer behavior clearly was impacted by rising inflationary pressures in the quarter. I was wondering if you can give us an update of what you've seen more recently. Have you seen an improvement in consumer behaviors as gas prices and some other inflationary metrics have come down? As we think about the back half, before you talked about a potential to get to the higher end of the organic sales range. Can you give us an update on how you're thinking about the back half at this point? Thank you. I think, obviously, the Iran war and the impact on gas prices has been meaningful, not only in the U.S., but across the world. Our international business, as you saw, continues very strong, and we were able to grow 7%, accelerating. In the U.S., we're seeing the consumer changing behaviors, basically an acceleration of some of the behaviors we saw in the past. Probably some channels, more the impulse channels, have been impacted, where there is more of a correlation with the price of gas Certain convenience stores and some other independent, we're seeing a slowdown of the conversion of traffic into purchases. We're seeing that. Now, will it change in the coming months? It all depends on the price of gas, clearly that's something that is beyond our control. We continue to invest in affordability. In those particular channels, we're working with our customer partners in solutions to convert more of the traffic in the store, bundles, linking to meals, solutions to address that particular channel. No, that is the only element that we're seeing in the last few months. We continue to see, as we look at the second half of the year, a very strong international business, and it's continuing to perform well into the summer. We see an acceleration of our U.S. business, both in the foods and the beverage business, and we continue to have a line of sight to the low end of our long term, 4%-6%, in the second half of the year. We're fighting for that. We see a lot of green shoots in our portfolio transformation. We feel good about our permissible, feel good about some of the innovation that we launched. We're going to scale them in the second half. We see our affordability investments to return better for us in the second half as we optimize the tactics for different channels, different consumers. Ramon, it's Steve. Just maybe a little bit on guidance since we talked a little bit about that. If we think about guidance overall, you saw that we reaffirmed our guidance for the year. If I take a step back and look at the performance of the whole company, and to reiterate some of what Ramon said a minute ago, the overall net revenue of the company grew 7% in the first half of the year, and Ramon just talked about the volume growth that we're seeing globally that makes us feel really good about the health of the brands. Reported EPS grew 6% in the first half. Constant currency EPS grew 3%. We continue to see strong international performance and a softer North America business than we expected in Q2. How does that play out for the rest of the year? As we look at the second half, we continue to expect the international net business to remain strong. We expect the North America business to gradually improve, a more moderate pace than we thought coming into Q2, as Q2 was less than what we expected. We do expect some more pressure on the business from a commodity standpoint, we also expect refund claims for tariffs paid last year to help offset some of the commodity pressures that we have and allow us to continue to play offense. The refund claims on the tariffs paid last year will be about 1 full point of EPS growth for the year. The other piece is we expect to keep pushing productivity on the business. We've taken costs out. We'll continue to do that. We have more work to do here. I think what's important for you to know is we're not making decisions that hurt the top line in our assessment. We're going to continue to make investments in growth. The North America advertising and marketing expense is projected to increase in the second half versus prior year as an example, we're going to continue to play offense. When we add it all up, we're in a position to reaffirm our full-year guidance, and as Ramon said, it may be towards the low end of the EPS range that we've given. Thank you. One moment for our next question. Our next question comes from Dara Mohsenian with Morgan Stanley. Your line is open. Hey, good morning. Morning, Dara. Obviously strong international results in the quarter, I wanted to focus on North America a bit. We talked about the sequential improvement in volume in PFNA in Q2, but I don't think it was to the level you expected, and maybe you can also comment on PBNA, where it looked like the volumes were also weaker than expected. Just was hoping for a little more of a short-term report card. Do you think that's less payback on some of the initiatives you put in place? Is it more the general consumer environment? Really what I wanted to focus on is more longer term, just your perspective on the level of spending behind that North American business as we look out longer term. Do you think to sort of revitalize organic sales growth in this environment, you might need some level of greater spending, a bit of an earnings reset as you look out? Just how do you think about investment levels behind the business looking out, given both the short-term performance you're seeing and the consumer environment? Thanks. That's a good question, Dara. The way we think about it is we still see the international business has obviously continued to be very strong, this is a business now is going to cross $40 billion in this year. International beverage volumes is two-thirds of the total company volumes, international foods volumes is over 50%. Clearly the international business is becoming a very scaled part of our business and profit accretive. We're creating a diversification in our business that long term will give us a lot of rewards. When you focus on the U.S., we continue to think that the three pillars that we said were going to help us transform and accelerate our growth in the U.S.. One was affordability investments, make sure that our brands are in consumers' lives in the portions and prices that consumers can afford today. That's one vector. Continue to transform the portfolio at a faster pace, following the new dietary habits and food habits and food and beverage habits of consumers. The third one was accelerate away from home as incremental locations for us to capture new locations for our brands. The portfolio transformation is working very well. We feel good about the no sugar part of our beverage business. We feel good about the functional hydration. We feel good about our energy business, and we feel good about some of the innovation that we're going to scale in the second half of the year. That part is good. We feel good about the permissible portfolio in foods. It's already $3 billion and growing almost double digit, the portion control. All those elements that we explained quite well in our prepared remarks, we feel good, and I think that is really the long-term of the business as you see how consumers will engage with our categories. The away from home business continues to be a priority internationally and in the U.S. It slowed down a little bit in Q2. We think that is going to help us accelerate in the second half. It's a strategic opportunity where we're innovating, creating new business models, and adding some incremental locations. The affordability part, which is the one you're referring to, we accomplished what we wanted to accomplish, which was to get volume back into our categories in our core brands. That was not an obvious thing to do, and we managed to do this in the first half of the year. We're optimizing the return on those investments, and what we learn is that, yes, because of the consumer environment and the fact that gasoline prices were higher, consumers felt a little bit more the economic impact. We think that we will continue to optimize those investments for grocery, high low, there's type 1 investment, for everyday low price, other type of investments, et cetera. The system is getting much knowledgeable and much more intelligent in how we get the best return from those investments. What was different this quarter that we were not planning is the performance on the impulse channels. That is something that we're working on, to tell you the truth, in the last few months to try to get more conversion between people getting into the gas station and converting into purchases of beverages and foods. That's something that we're working with our partners. That is new. The gas prices have impacted. The gas prices will at one point come down, and then that will become, hopefully, less of an issue second half of the year or early into next year. That's the full picture. We don't think we need any sort of reset because we have a very strong productivity, record productivity in the first half of the year. We're going to add new layers of productivity second half of the year to be able to fund all these growth investments. Be it price, be it portfolio transformation, or the growth into away from home, which will drive the portfolio acceleration. That's how we're thinking about this now. Steve, any? I think you've covered it well. Okay. Thank you. One moment for our next question. Our next question comes from Andrea Teixeira with JPMorgan. Your line is open. Thank you. Good morning. On the guidance for the second half, you're now adding about, I believe, $0.07-$0.09 in EPS from the tariffs and reinvestment. You also mentioned that EPS would be more back-loaded into the Q4. Just want to double-click on what Ramon just said about the affordability pillar. Should we expect more price rollbacks similar to what your biggest customer in the U.S. has recently announced rolling into other retailers? If so, can you give us some examples of how these reinvestments have converted into better volumes? You just talked about the C&G, the convenience and gas. Anything you can point out to one of your biggest partners that would allow us to think about volumes finally reflecting in some of these channels in away from home. When you think about the $0.07-$0.09 reinvestment, so implies more flattish 3Q. I just want to double-check that math. If that's the case, how we should be thinking, is that mostly to absorb the commodity pressures that you highlighted or the A&P investments or A&M investments, or should we think about the affordability price reinvestments being the bulk of it? Thank you. Andrea, it's Steve. Thank you for your question. It's good to hear from you. I think on the first part of it, we're going to continue to run our play. We have a strategy that we believe in. Ramon talked a little bit about maybe we'll likely have to make some tweaks based on what we're learning from the value standpoint, but we're going to continue to run our play there. On the impact from the tariffs, maybe I'll talk a little bit about Q3 and then Q4 because you mentioned both. If I talk about Q3, and I don't like to give specific guidance on quarters, but I think it's relevant to give you a little bit about the timing since I shared some in my prepared remarks. On the positive side, we continue to expect international to be strong. We do expect, like you said, about approximately 1 point of EPS benefit from tariff refund claims likely in the quarter. We expect a gradual improvement in North America, and we will be using the tariff, essentially the refunds to help offset some commodity inflation that we're seeing and allow us to continue to play offense in the business. That's how we're thinking about that. Also unique to Q3, we expect to have a higher tax rate year-over-year than what we've seen so far this year, so that should go into the math. There will be ti ming of certain costs and investments that we expect to impa ct Q3 more than Q4. We'll continue to focus on productivity. We expect more productivity in Q4 and Q3. That's how we're thinking about the overall math of the back half. Yeah, Andrea, if you think about the big picture, clearly, the impact of the gas prices or the oil price in our cost of goods globally and the impact of higher gas prices in demand, these are new elements that obviously we're looking at to compensate with higher productivity. The tariff refunds comes obviously very handy and in some other trade-offs that we have to make in the business. These are normal trade-offs that we make during the year because there's no new data points on some elements of our P&L that we have to compensate with others. That's how we're thinking about the overall pool of money that we have available to continue with our guidance, which is the higher order deliverable now, the high growth and the EPS numbers that we gave you earlier in the year. Thank you. One moment for our next question. Our next question comes from Kevin Grundy with BNP Paribas. Your line is open. Great. Thanks. Good morning, everyone. Sorry for beating a dead horse here, I wanted to come back to the North America food performance, ask from a little bit different angle, maybe play back some of your comments, Ramon. Specifically, the thrust of the question is around performance currently versus the strength that you saw on the test markets back in the fall, where there's a lot of enthusiasm, both from a PepsiCo perspective as well as from a retail perspective, as best we gather. Can you help us sort of delineate between the macro factors, you talked about tighter consumer budgets and higher levels of inflation, versus more company specific factors and how that looks versus, say, nine months ago or so when you did the test market work. I guess on the call, I'm hearing you're looking for better ROI on some of the price investment, maybe better execution in the impulse channels. Really just trying to gauge the key factors, the big areas that have changed since the test market work versus what we should expect now going forward, and why things may get better. Thank you. Yeah. I would say the higher order is we've been able to accelerate volume growth in the category. Salty snacks is one of the few categories that is growing volume in the overall food space in the U.S. That was a positive. That was the number one intent. The second one is for us to be a driver of that volume. We're gaining share of volume in the U.S. in salty snacks, which was also the other objective. That's the number one. Is the volume as much as we expected? No, not in Q2. It's a couple of elements. I think the consumer is worse than what we had anticipated and it's driven mainly by gas prices. Second, the execution of the price investment in some customers have had some delays, I would say, because of multiple commercial reasons. That has been solved, so we'll see an acceleration in the second half. The consumer reaction to the investments is pretty much along the lines of what we had initially anticipated. I wouldn't question the strategic logic of the investment. There are tweaks that we have to make commercially, and there are obviously different circumstances in the U.S. consumer budget trade-offs that consumers are making given some of the recent inflation, especially on gas prices. That's where I would leave it here. We remain focused, as Steve said, on continuing the playbook. We continue to invest on our portfolio. We continue to invest on our affordability. We continue to invest on our way from home. We think that the food business in the U.S. will continue to grow volume and grow net revenue, in the coming quarters. Thank you. One moment for our next question. Our next question comes from Peter Grom with UBS. Your line is open. Great. Thank you. Good morning, everyone. There's been a lot of focus on North America this morning, so maybe just pivoting to the international business. Ramon, maybe you could just give us a walk around the world in terms of what you're seeing around category growth, health of the consumer. Were there any notable differences in any key regions as you move through the quarter here? Steve, maybe not to get too specific, but when you speak to international growth remaining resilient, in the balance of the year, should we be extrapolating the growth that we saw in the second quarter for the balance of the year? Thanks. Yeah. Thanks for putting the international business in the center of the conversation. Yes, this is a business, as you know, we've been investing for the last five, six years, and it's now, as I said earlier, a big part of our volume globally and a big part of our revenue and profit globally. This is clearly a success story for the company and will continue to be a big driver of growth for us in the coming years, given the per capita and given the share of market opportunities that we have globally. Around the world, I would say, going into the quarter, we were a little bit concerned, obviously, with the performance around the Middle East and some of the Asian markets, where the gasoline prices were more obvious. The truth is that all those markets have remained very resilient. If I think about Vietnam, Thailand, China, some of the markets where the gas prices were elevated, and the same with the Middle East. Our Middle East business continues to perform a very good level. We're seeing that our procurement global capabilities and the agility of the business is proving to be an advantage for us in some of the markets where we're pivoting faster than competition in terms of raw materials availability and agility to compensate for the inflation. Europe remains resilient, pretty good. Clearly, the World Cup is helping, and the fact that we're sponsoring the World Cup in our food business is helping us to activate the category in a better way. It's creating occasions, we're capturing, and we started Q3 very strong in international. Latin America, a little bit less growth than in the rest of the business, as you saw, clearly trending very positive and the World Cup obviously having a very big impact in that part of the world. Overall, broad good performance. Part of that is category acceleration. Part of that is better share of market. I would say better in beverages than in food. In food, we still have opportunities to improve our share of market in some parts of the world. We continue to see the business trending well throughout the summer and into the winter. Peter, just to answer your question on what we would expect in the second half. As I look at the business, the signs are pointing towards continued strong growth. Ramon mentioned the volume growth that we've seen, that's a pretty good indicator of the health of the business in international. Maybe one thing to call out is we do expect some commodity inflation, probably more so in EMEA in the back half of the year, the teams have been very proactive in mitigating some of the inflation that we expect to come through. One thing just to point out to demonstrate not just the top-line growth of the international business, but in the second quarter, operating margin grew by a full point. We feel good about the top line, and we also feel good about the efficiency of how sales are running through the P&L. Thank you. One moment for our next question. Our next question comes from Lauren Lieberman with Barclays. Your line is open. Great. Thanks so much. Good morning. I just want to talk a little bit about the margin pressure that we saw in PBNA this quarter and how to think about profitability over the balance of the year, just knowing the ongoing focus on improving margins here, you've got the realities of higher inflation. I'm assuming this is also an area where there will be some incremental reinvestment to support your volume ambitions. Just talking a little bit about profitability and PBNA. Thanks. Sure. I'll take that. If you think about the PBNA business from a margin perspective, operating margin was down about 90 basis points in the quarter, that was driven by gross profit rate. The gross profit rate decline, I'd call out three things. About half of their rate decline was driven by the business we have through Alani and the commercial arrangement we have there. That's about half the gross profit decline. The other pieces would be more around the convenience and gas channel that Ramon was talking about that was particularly soft in the quarter, as well as some of just product mix overall. Those would be the three things that I'd call out. On the G&A side, the team continues to push the productivity envelope there. Going forward, I think as Ramon talked about, we need to see some improvement in the convenience and gas channel. Hopefully we'll get some tailwinds from gas prices to do that. We'll continue to push the productivity side. Thank you. One moment for our next question. Our next question comes from Michael Lavery with Piper Sandler. Your line is open. Thank you. Good morning. Just wanted to come back to PFNA and see if you could add some color on just shelving and distribution updates. I know at the beginning of the year, you were expecting some upside, and curious if you could just maybe give us a sense of timing, how much maybe still is to come, how much might be permanent secondary displays or maybe just temporary ones, and just how to think about how that unfolds. Yeah, I would say the space increase that we had initially planned has been coming throughout the year. There's still more to come. There's been some channels where it's taken a little bit longer to execute that space increases, We will see those coming in the second half of the year as some of the commercial conversations are coming to fruition. I would say increase in permanent space, the perimeter space, as I said earlier, is going to come more in the second half of the year, particularly in some channels where we had to come up with some different solutions with the customers. Long-term, this is going to happen. I mean, long-term in second half of the year, we should have some acceleration in the return on investments in those particular customers. Thank you. One moment for our next question. Our next question comes from Steve Powers with Deutsche Bank. Your line is open. Yes, great. Thanks so much. I guess maybe a little bit of a follow-up on that, Ramon. From the outside, I think that's what the prior question was getting at, it just seems like a lot of the initiatives that were discussed coming into the year Especially along the lines of affordability and package and product innovation, appear largely in the market. I guess the go forward question there is it more about optimizing and scaling the efforts that you've already put in motion, or are there additional actions that remain ahead that can serve as catalysts? Shelf space is part of that, I guess. Anything more, along the lines of t hat point. We're in the journey of the three pillars that I mentioned. On the portfolio transformation, most of the innovation that we launch is working quite well in Food North America. We're scaling up Naked, we're scaling up Doritos protein and some of those new platforms that will contribute to the overall permissible portfolio growth and the portion control. In the portion control, we made some investments in opening price points for multi-packs and variety packs that are also working very well. I think portion control, portfolio transformation, that part, I think is well in its execution and we're scaling up those platforms. The away from home acceleration, let's say There were a couple of elements between supply chain and customer execution in the away from home part of the business that slowed down in Q2, now it's accelerating in Q3. That will be a pillar of acceleration. On the affordability investments, as I mentioned, there are channels where the investments are working very well, and there are other channels where we had to make some tweaks, and we're executing those tactical mechanics of the value to the consumer. That is being put in place and we'll see the benefits in the second half. That's more or less in the overall picture of the three pillars of the food business in North America acceleration. That's where we are. Thank you. One moment for our next question. Our next question comes from Peter Galbo with Bank of America. Your line is open. Hey, guys. Good morning. Thanks for taking the question. Steve, just to put a finer point on your prepared remarks, you talked a bit about the gradual rate of improvement in North America for the second half. Just wanted to understand if there's big differences in terms of the two segments and the rate of improvement, or if they should look relatively similar as we think about the back half of the year. Thanks very much. Sure. Thanks for your question. Look, if I had to take North America and dissect it a little bit, I would expect more profit improvement faster from the PBNA business than in foods as we make the value investments and the tweaks that Ramon talked about on how that ripples through the system. That would be the additional color I would provide. In Q4, obviously I would expect more better profit performance than in Q3. Thank you. One moment for our next question. Our next question comes from Robert Ottenstein with Evercore ISI. Your line is open. Great. Thank you very much. Just kind of stepping back, a little bit more of maybe a strategic question. The difference in performance between the U.S. business and the international is pretty stunning. You noted that in a lot of markets around the world, higher gasoline prices were an issue. To what extent do you think that, hey, the U.S. market is just a pretty mature market. The rest of the world, there's much greater opportunity. Does it make sense or maybe you're doing it, we don't really have a view into it, but are you perhaps overinvesting in the U.S., underinvesting internationally given the growth potential of both of those markets? You noted that the international business now is margin accretive. That's the big picture question. Tied to that, perhaps is maybe if you could give us an update on the integration testing that you're doing in Texas as a way to lower your cost basis in the U.S. Thank you. That's great, Robert, thanks. The two are related, but in a way, we've been investing in international for many years, and one of the, obviously, things we're very careful about is make sure we don't starve international of the capital or of the investments to continue to grow that business. Because as you said, if you think about the company five, 10 years from now, that will be the biggest source of growth, and that is where the biggest opportunity is for us to continue to expand our brands and develop our categories. The U.S. is critical for us in the short term and the long term, and we believe that both keeping our brands in consumers' occasions that we have today, but also providing new offerings both in foods and beverages that cater to the new trends in food consumption in the U.S., and also expanding our away from home, is a way for our North America business to continue to be a compounder for us at a good pace. And it's not currently we're growing at a 1%, it's more towards the 3% levels that we think the U.S. total business can grow in the future. To fund that growth, we don't want to starve international. Some of the big productivity initiatives we have in the U.S. are precisely for that. To make sure that we can fund the transformation of the U.S. business without starving the international business. To that point, I think automation, we are expanding automation through our business. We're expanding some of the digitalization that would make us much more effective and productive. One of the pillars that you refer to is how do we combine the scale of our two American businesses to change the cost structure of the overall business, especially on the logistics side of the business, right? The warehousing, the transportation, and delivery. We're making good progress. We'll have an update for you with more detail later in the year, early next year. I would say where we're testing in Texoma, we are seeing mixing centers being a big idea for us, and that is scaling. These are combined mixing centers where we put the inventory from the two categories. That gives us a lot of flexibility to service our customers and lowers our cost. We are testing incremental ideas like combined delivery, combined fleet. Those are big transformations, and it requires systems, it requires assets, but all of this is in motion and with positive return so far. There are other transformations that we are doing in terms of integrating our G&A and integrating our systems that would allow us to have a lower cost business that is more affordable and can invest in the growth spaces in the U.S. Great question and one of the clear strategic funding, resourcing decisions that we have in the company. What we want to tell you is that we are not starving the international business to fund the U.S. business. The international business has enough capital, enough A&M, enough talent, investment to continue to be a great source of growth for us and a compounder at the levels that you are seeing for the last five, six years. Thank you. One moment for our next question. Our next question comes from Robert Moskow with TD Cowen. Your line is open. Hi. Thanks, Ramon and Steve. There was an article in the press about six weeks ago about a 10%-20% price increase that you are taking on Frito-Lay smaller bags, and I suspect that that is really for the convenience channel. Today's results indicate that convenience has been weak. In terms of the investments you are making, are you taking steps to kind of cushion the blow for consumers so that affordability doesn't get worse in that channel from here? Yeah, that channel is critical for us. The way we're trying to increase the incidence of purchase in that channel is through bundles and some other incentives for purchase that we're actually partnering with our customers across the country. That we see the benefit when we have good offers and bundles, beverages and foods, or foods or snacks and foods, we see that being a great accelerator of the performance of the different customers. We're not trying to raise prices in the single-serve business to pay for the investments in the take-home business. That's not what we're trying to do. Thank you. One moment for our next question. Our next question comes from Chris Carey with Wells Fargo Securities. Your line is open. Hi, good morning. Can you just give us a sense of performance and opportunities of some of your recent acquisitions, perhaps most specifically Siete and poppi, and in general, give us a sense of how you're viewing the M&A environment, willingness for additional acquisitions, and how in general that factors in your medium-term plans. Thank you. Both Siete and poppi are doing well. poppi, the transition between the distributor system that poppi had and our system. Obviously, there's a big transition. There's a lot of distributors, and we had a bit of an impact in the first part of the year. Now that is pretty much solved. The business is flowing through our supply chain, and we're seeing the benefits of that in additional consumption points and additional customers, and that will continue. We're seeing poppi growing again at a good pace. Siete as well. Siete was integrated earlier. We had some issues with some of the ingredients in Siete that impacted the performance of the business in the April, May timeframe. That has been solved as well. They're both very critical parts of our strategy to transform of our portfolio. We mentioned we're going to be innovating with our brands into new spaces, but there will be spaces where we continue to think that buying a brand and expanding that brand within our system is a great return, and Siete and poppi are good examples. We're also looking at partnerships like the Celsius and Alani Nu. That's another way that we're using to expand our offerings to consumers and to leverage our capabilities, be it go to market, be it others. To provide consumers opportunities in spaces where it would be hard to scale an innovation from ourselves. As you saw from our prepared remarks, we're innovating with our brands in many of these new spaces and leveraging our R&D and our brands and our teams to provide new solutions, be it new packs, new functionality, new occasions that continue to add business to our brands in the U.S. Thank you. One moment for our next question. Our last question comes from Kaumil Gajrawala with Jefferies. Your line is open. Hey, guys. Good morning. I guess I'm just struggling a little bit to understand what optimizing return on investment means. Does that mean that perhaps some discounts were not working and they're not worth doing anymore? Is it something else to drive more volume? I understand it conceptually, but not practically in terms of what's actually changing and what the goals are for that. Is it a profit? Is it intentions for ROI for profits or intentions for shifting where you're deploying capital to drive volumes faster than however they're growing now? I think it's trying to get more volume from the investments, Kaumil. There's high-low customers, there's everyday low customers, and the mechanics, how you can maximize the return on the trade investments or offers that you make to the consumers can derive more volume or less. That is what we mean by optimizing the return on the investment. It's a very specific customer by customer, holiday by holiday, beginning of the month versus end of the month, all those details and how we execute that with our customers. It's simple on the everyday low price customers, a bit more complex on the high-low, and that's where we're trying to tweak. Thank you very much all for your conversation and for joining us today and the confidence you're placing with your investment in our stock. Thank you very much and have a great day.